Noble Corporation (NE) is the third-best-performing stock among its peers, behind Diamond Offshore Drilling (DO) and Rowan Companies (RDC). NE stock has fallen 28% YTD (year-to-date) as of December 12, 2017. Diamond Offshore Drilling and Rowan Companies’ YTD returns are -3.5% and -22.6%, respectively.
Noble Corporation stock has significantly underperformed the broad equity market indexes. The Dow Jones Industrial Average (DJIA-INDEX) has risen 23% YTD as of December 12, 2017. The SPDR S&P 500 ETF (SPY) has risen 18.7% during the same period.
Although Noble Corporation has a negative YTD return, in the last three months, the stock has traded in the green, rising 19.6% in the last three months.
Noble Corporation is an offshore drilling contractor for the oil and gas industry. Through its subsidiaries, it contracts drilling services with a fleet of 28 offshore drilling units—14 drillships and semisubmersibles, and 14 jackups.
Performance in 9M17
In the first nine months of 2017, Noble Corporation had revenue of $907 million, which was 52% lower than $1.9 billion in the same period last year. As of September 30, 2017, its backlog was $3.2 billion, which is almost the same as its backlog at the start of the year. It recorded a net loss from continuing operations of $479 million in the first nine months of 2017, which was significantly lower than $425 million in the same period last year. It generated a positive free cash flow in 2017 and expects that to continue in 2018.
In the next part of this series, we’ll take a look at the stock performance of Transocean (RIG).